The initiator of the WCashPlus Process, Graham Lloyd, has implemented it with a high degree of success within a number of different businesses, several of which ultimately reached negative Working Capital.
- While working for a $6bn materials company, Graham turned the Working Capital of two of its operating divisions totally into cash, receiving an Award for Asset Management. He subsequently taught the WCashPlus Process to other General Managers, whose businesses have since enjoyed similar success.
- The WCashPlus Process generated cash for a private equity group where Working Capital at one of its portfolio companies was reduced from 16% of Sales to a negative 6%, within a customer base including Wal-Mart, Target, CVS, UPS & K-Mart.
- With the assistance of WCP International and the WCashPlus Process, a Fortune 500 company was able to grow its Sales substantially while reducing Working Capital by over $200MM.
- WCashPlus enabled Working Capital at a $170MM specialist packaging company to be reduced from 12% of Sales to less than Zero. DSO’s were reduced from the high 40’s to the low 30’s, with 98% of Accounts Receivables kept Current within a customer base that included P&G, Unilever, L’Oreal, PepsiCo, Kraft and Energizer. Finished goods were reduced by 75% and EBITDA was improved through a dramatic reduction in bad debt and Inventory write-offs.
- When Sales took off at a private equity owned $150MM Global Services Company ($150MM+ private equity), the growth consumed its Cash & exhausted the Revolver. The CEO brought in WCP and used the WCashPlus Process to reduce WC from 24% down to 6% of Sales. This enabled the company to pay off all Revolver and fund an acquisition. Continued use of the Process over the next three years generated enough Cash to pay down the total debt.